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Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machine has a

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Playtime Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1 million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows: EEB Click the icon to view the data.) Calculate the sandbox toy project's payback period. If the sandbox toy project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. Does this investment pass Playtime's payback period screening rule? Calculate the sandbox toy projects payback period First, enter the formula, then calculate the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places. Abbreviation used: Amt. Amount.) Full years At. to complete recovery in next year I Projected net cash inflow in next year Payback -2.34 years 310,000 105,000 If the sandbox toy project had a residual value of $125,000, would the payback period change? Explain and recalculate if necessary. If the investment had a $125,000 residual value, the payback period would not be affected. The cash inflow from any residual value would occur at the end of the asset's useful operating life and is not taken into account when calculating the payback period Round your answer to two decimal places.) The payback period if the sandbox toy project had a residual value of $125,000 is years

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